The Coronavirus has had a huge impact on all of our lives. We are having to self-isolate, social distance and work from home at previously unheard of levels. Alongside worries about our own health and that of more vulnerable loved ones, we’re also worrying about our money and investments.
You will be aware of the volatility of the stock markets since the pandemic took hold. From a starting point of 7,604.30 on 2 January 2020, the FTSE 100 index climbed to a high of 7,674.56 on 17 January before falling to 6,580.61 on 28 February and a low of 4,993.89 on 23 March. By the end of March, it had rallied a little to 5,671.96 but that was still around 25% below its start of the year position. At the time of writing, the markets are continuing to experience a rollercoaster ride. Whether you find this thrilling or worrying will, of course, depend on your perspective.
Markets have always reacted to uncertainty so their response in the face of the worst pandemic the world has seen since the Spanish flu is perhaps not surprising. It’s also not surprising that our clients are worried about their investments and we want to reassure you that we are here to help.
In the face of falling markets there are opportunities as well as threats. Our advice in general to those who have medium-long term investment goals is to stay invested during the current crisis. In addition, it may be a very good time for you to add more to your investment portfolio, if you have the resources available.
We appreciate that it can be very difficult to stay invested when there’s a lot of panic in the market – much of which is fuelled by sensationalist media reporting. But it is important to keep a long-term perspective, if you can. In the words of Investment Management company, Brooks Macdonald: “Those who are patient are rewarded.”
Whatever your circumstances, we are here to help you find an investment strategy that meets your needs and aspirations and fits with your attitude to risk.
Please contact your Brunsdon Financial Adviser for help or advice either on the impact of the coronavirus on your investments or on any other aspect of your wealth management strategy.
The value of investments can fall as well as rise. You may not get back what you invest.
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Source 1: FTSE 100 Index